Tag Archives: tracking

Big Tech Knows Who You Are!

Tips for enhancing your digital privacy

Companies are following your every move. When you have a cell phone, they are tracking what apps you use, where you go, who you talk to and more! Other smart devices listen to your conversations in your home, keep track of what you view on your TV, and report where you visit and what routes you take to get there. Even worse, the more you share the greater the chance a hacker gets this information.

Consider these tips to more actively protect yourself and your information.

The power of the opt out

Apple recently introduced an opt out feature on their iPhones. Historically, when you download a new app onto an iPhone, you have to manually opt out of sharing your device’s data. Now when you download a new app on your iPhone, you’ll be asked whether you want to opt in and allow the app to have access to your information.

So, if you are an iPhone user, start with the opt out and then deliberately select who you wish to give access to your information. And opt out does not have to be global. For instance, a direction function needs your location when you use it. But it does not need to be turned on all the time.

Actions:

  • Leave opt-out as default on iPhones and set default to opt-out on other mobile phone brands.
  • Review all apps and turn off tracking and data sharing.
  • Actively turn off your phone if you do not wish to be tracked.
  • Review all smart devices and select your opt out options. Include TVs and personal assistants in your review.

Protect your web browsing

Companies love to keep tabs on your browsing habits. And it is not just limited to their own sites. They might spy on ALL your activity. They see every website you visit, monitor all your clicks, and track all social media likes and videos you view. They then use this information to determine what you see and read. In short, they control your world view, both in content and in what ads you see.

Actions:

  • Actively use ad blockers such as AdBlock and uBlock.
  • Turn off cookies and periodically empty your cache.
  • Avoid downloading any and all extensions unless absolutely required.

Use best data protection practices

As the internet and smart devices evolve, so do the thieves that wish to steal your identity and your financial resources. So, keep up-to-date on best data protection practices.

Actions:

  • Vary passwords and user IDs. Keep track of them outside of your computer.
  • Keep operating systems and software up-to-date.
  • Encrypt your emails and computer hard drive.
  • Keep banking information off your cell phone.
  • Back up all your devices remotely.
  • Use current antivirus software.
  • Monitor your credit reports for any suspicious activity.
  • Confirm before opening suspicious emails or attachments.

Most importantly, stay informed. In the end, the burden of protecting your data always falls on you.

Make the Most of Your Vehicle Expense Deduction

Tracking your miles whenever you drive somewhere for your business can get pretty tedious, but remember that properly tracking your vehicle expenses and miles driven can lead to a significant reduction in your taxes.

Here are some tips to make the most of your vehicle expense deduction.

  • Keep track of both mileage and actual expenses. The IRS generally lets you use one of two different methods to track vehicle expenses – the standard mileage rate method or the actual expense method. One year the mileage method may result in a higher deduction, while the actual expense method may be higher in a subsequent year. But you won’t know which method results in a higher deduction unless you track both your mileage and actual expenses.
  • Consider using standard mileage the first year a vehicle is in service. If you use standard mileage the first year your car is placed in service, you can then choose which expense tracking method to use in subsequent years. If you initially use the actual expense method the first year your car is placed in service, you’re locked in to using actual expenses for the duration of using that car in your business. For a car you lease, you must use the standard mileage rate method for the entire lease period (including renewals) if you choose the standard mileage rate the first year.
  • Don’t forget about depreciation! Depreciation can significantly increase your deduction if you use the actual expense method. For heavy SUVs, trucks, and vans with a manufacturer’s gross vehicle weight rating above 6,000 pounds, 100% bonus depreciation is available through the end of the 2022 tax year if the vehicle is used more than 50% for business purposes. Regular depreciation is available for vehicles under 6,000 pounds with annual limits applied.
  • Don’t slack on recordkeeping. The IRS mandates that you track your vehicle expenses as they happen (this is called contemporaneous recordkeeping). You’re not allowed to wait until right before filing your tax return to compile all the necessary information needed to claim a vehicle deduction. Whether it’s a physical notebook you stick in your glove compartment or a mobile phone app, pick a method to track your mileage and actual expenses that’s most convenient for you.

Please call if you have any questions about maximizing your business’s vehicle expense deduction.

The Hidden Tax Consequences of Cryptocurrency

You may recognize the name Bitcoin and maybe even Ethereum, but what about Litecoin, Dogecoin or Ripple?

These are just some of the more than 4,500 cryptocurrencies available today. There are hidden tax complications, however, associated with every cryptocurrency transaction. Here’s what you need to know.

  • Every transaction has a tax consequence. The IRS treats cryptocurrency as investment property, like stock, and taxes every transaction as a capital gain or loss. When you pay for something in the traditional manner with U.S. dollars, the IRS doesn’t care what the value of the dollar is at the time of the transaction. For virtual currency purposes, however, the value matters. For example, assume you buy Bitcoin for $10 and two months later the market value of that Bitcoin grows to $15 and you spend that $15 worth of Bitcoin to buy something, you’ll have a $5 taxable short-term gain that needs to be reported on your tax return. If you spend a lot of cryptocurrency, tracking the gains and losses can be very complicated.
  • Big gains mean big taxes, but big losses may be limited. In classic IRS form, there is no cap on the amount of taxes you might owe in a single year for gains on the value of cryptocurrencies you sell, while losses might take many years to recoup because of the annual $3,000 loss limit against income. Adding to the complexity, virtual currencies have dramatic valuation changes…much more so than most traditional investment securities. So, you will need to budget appropriately for the taxes you’ll owe whenever you use or sell cryptocurrencies.
  • Cryptocurrency puts you on the IRS’s radar. Being relatively new, virtual currency has caused the IRS to become very concerned about potential mistakes and fraud related to how cryptocurrency is reported on tax returns. The IRS is so concerned about you not reporting cryptocurrency activity that the very first question of your tax return, right beneath where you put your name and address, asks if you took part in any virtual currency transactions over the past year.
  • You are responsible for bookkeeping. With the IRS watching so closely, it’s important to be accurate with your recordkeeping so you can properly report all virtual currency gains and losses on your tax return and substantiate all your transactions in the event of an audit.

Ideas to Help the Virtual Learning Challenge

Virtual learning is a way of life again for many kids as we head towards winter.

Mayo Clinic psychologist Dr. Craig Sawchuk says that families will need to adapt to changing circumstances this school year.

“We’ve all been dealing with uncertainty,” Sawchuk said in a recent Mayo Clinic Q&A podcast. “We need to be flexible with the format of how our kids learn. It’s all going to look different, regardless of whether your kids are doing in-person, virtual or a hybrid learning model. And it’s subject to change.”

Here are some ideas shared by creative parents and experts to help maintain your family’s sanity, while trying to navigate virtual learning through the extended stay-at-home winter days.

  • Keep your kids moving. An absence of in-person learning means no recess and no gym class. Keep your kids exercising by scheduling 30 to 60-minute blocks of time for them to do their favorite activity. These activities can include, but not be limited to, walking, jogging, biking, skateboarding, rollerblading or riding on a scooter.

    Do it differently: Consider tracking student activity information on a spreadsheet, then teach them how to make charts and graphs. They can then see progress toward fun goals while learning how to work with spreadsheets.

  • Get crafty. Kids love anything that involves glue, scissors and building stuff. Set aside a dedicated area for your kids to build whatever they can imagine. Give them some latitude to get messy (as long as they clean up!).

    Do it differently: One of the more interesting phenomena of this year’s pandemic is our national coin shortage. If you have some spare change that you’re willing to part with, have your kids search online for DIY coin crafts.

  • Put on the chef hat. Turn your kitchen over to your kids. Yes, it might get messy, and your meatloaf may end up a little dry, but getting your kids to cook can spark their creativity and get them into the habit of helping prepare food for the entire family.

    Do it differently: Have your kids create their own cooking show. Set up a video recorder on a sturdy tripod and have them narrate what they’re preparing. If extra time allows, they can jump on a video editing software program and edit their TV show.

  • Thumb through an actual book. Textbooks have been replaced by tablets. Newspapers have been supplanted by websites. Physical books have given way to e-books. While your kids are at home, consider reading through an actual book, while sitting on an actual chair or sofa.

    Do it differently: After reading a book, have your children or grandchildren create their own story. Or have them create a different ending. You can record the story on your phone or be their scribe. They can then make their own book to share.